Fiscal policy transmission mechanisms

Manoel Carlos Pires () and Luiz Fernando de Paula ()

Brazilian Journal of Political Economy, 2024, vol. 44, issue 3, 467-483

Abstract: The effect of fiscal policy over business cycles has been a source of major controversydespite the growing empirical literature and international experience. This paper proposesan analytical framework that allows us to analyze the transmission channels of fiscalpolicy, updating the most recent findings after the pandemic. In this way, it aims to contributeto a more detailed understanding of some of the main mechanisms by which fiscal policyaffects the economy. JEL Classification: E32; E63; H62.

Keywords: Fiscal policy; fiscal multipliers; interest rates; investments (search for similar items in EconPapers)
Date: 2024
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